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Chang: Manufacturing Leaving China

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    Author Gordon Chang on Apple and other companies pulling manufacturing jobs from China.

  • Duration 3:37
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In early 200911.

President Obama -- Steve Jobs if you would bring some manufacturing jobs back to America from China.

He said those jobs are not coming back.

I'll hold on a second on the Tim Cook apple says it will bring -- production back to America.

Joining us now is Gordon Chang -- -- -- -- -- coming collapse of John and we'll talk about the coming collapse in just a month.

Festival apple -- bringing back a hundred million dollars with the spending a hundred million to bring some -- production here -- say that is a total drop in the bucket nothing.

Then some people say -- a political move on the part of rappel.

But it is part of a broader narrative of manufacturing leaving China and -- not just apple so for instance Lenovo which is China's largest PC maker announced in October that is making it's bringing some production to its North Carolina facility.

GE for instance is bringing a lot of production back from China small and medium sized manufacturers are doing this and go to Wal-Mart look at their house friend George.

All of it is made in Bangladesh it used to be all made in China -- -- why -- manufacture the idea for years we've said China is -- manufacturing centerpiece of the planet's.

Why -- leaving.

There's so many reasons first -- -- Wage rates are going up much faster than productivity and inflation the number of workers is peaked in 20106.

Years before China's official -- said that it would.

-- cost going up.

Political risk used to be not a factor now it is is China's trying to use its geopolitical leverage.

And you have risk of intellectual property loss you know the list just goes on.

China is really no longer an advantageous.

Platform for manufacturing for markets other than China -- think many of these jobs will come back to America high tech -- -- do you think.

I mean -- -- many of whom come from -- many of them will come back when US.

Boston Consulting Group said that in 2015.

You'll see seven industries where be cheaper to manufacture in the US and -- China and also there's all sorts of manufacturing advantages here if you.

It might -- for the US market.

Transportation costs are lower delivered -- market is slash.

Energy prices are much cheaper your workforce is more productive and less likely to go out on strike -- what wait wait wait a minute.

The -- -- in America is more productive and less likely to go on strike -- in China.

Yes the because in China you have just one wildcat strike after another you -- the suicides.

Foxconn which makes all the products for apple is basically saying look we're gonna automate they had 101000 robots last year in 2014 else have.

One million.

You know if you have -- ties production you know.

That eliminates China's manufacturing advantages of cheap labor so.

At a factory in Texas or California where Foxconn has facilities with robots is just a cheap or cheaper.

Then a robot at a robot sized factory.

In for instance Shenzhen -- -- accident while mall last woefully.

You wrote that book the coming collapse of China in 2000 fall.

One -- it went at it.

Yeah how we how come you're so wrong because China has not collapse has no but I said it would occur -- a decade some a year out of time but.

-- you see the problems there are you seeing economy slumping.

The political system is stumbling the -- central government's authority is eroding the military is breaking -- -- civilian control and Chinese people are taking to the streets of the wheels are coming off China.

The gonna be right eventually very soon within the next two uniqueness maybe even sooner than that the very interesting going back there's always the -- -- we thank you thank you.

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